Oswit Land Trust files cross-complaint, claiming HOA interfered with preserve project, grant funding

In the ongoing battle over a former golf course destined to become a nature preserve, Oswit Land Trust (OLT) has filed a cross-complaint against the Mesquite Country Club Condominium Homeowners Association, alleging breach of contract and interference with a multimillion-dollar grant.

The legal action, filed Nov. 1 in Riverside County Superior Court, comes in response to a lawsuit initiated by the HOA against Oswit in August 2022. The trust is seeking damages and declaratory relief regarding property use rights for 120 acres split by South Farrell Drive that once housed the former Mesquite Golf Course.

Oswit claims the HOA has failed to pay required monthly rent since August 2022, resulting in over $540,000 in unpaid fees. The trust is seeking this amount plus $20,893 per month through the trial date.

The cross-complaint also alleges the HOA interfered with Oswit’s $7.2 million grant from the California Wildlife Conservation Board, intended for restoration of the former golf course property.

Oswit claims the HOA and its members “engaged in a campaign of conduct including repeated public records act requests to the WCB, multiple negative contacts to WCB staff to interfere with the WCB grant to Oswit, doxing Oswit board members by placing personal information and home addresses on social media, harassing and threatening Oswit board members.”

The trust is seeking at least $7.2 million in damages for the alleged interference, as well as punitive damages.

Oswit purchased portions of the former Mesquite Golf Course in July 2022 with plans to create a public nature preserve called Prescott Preserve. The HOA filed suit against Oswit the following month, seeking to force the trust to operate a golf course on the property.

Last month, the Palm Springs City Council voted 4-0 to deny appeals against the project, allowing OLT to proceed with its plans to convert portions of the former golf course into the nature preserve. The decision came despite the ongoing legal disputes.

In its cross-complaint, Oswit argues that neither the lease agreement nor the property’s covenants, conditions, and restrictions (CC&Rs) mandate golf course operations.

“The Lease and CC&Rs are clear: the language requires open space and only through June 25, 2034,” the filing states. “The Lease and CC&Rs do not have express terms that require the Landlord to maintain, let alone ‘operate’ a golf course.”

Oswit is seeking declaratory relief on several issues, including whether its nature preserve plan qualifies as an authorized open space use under the existing lease agreement.

The trust also contends the HOA board lacked the authority to initiate the original lawsuit without membership approval, citing the 1984 CC&Rs: “The Board shall not have authority to act in the following matters, but only the condominium Owners shall have the authority to: . . . (d) Initiate legal proceedings in a Superior Court of the State of California.”

Additionally, Oswit alleges the HOA violated the Davis-Stirling Act by failing to provide proper notice of board meetings where the litigation was approved.

“The HOA continues to prosecute an illegitimate lawsuit that was initiated by the current homeowner’s association board without authority under the Davis-Stirling,” the cross-complaint states.

Oswit further argues that the HOA lacks standing to sue for diminished property values, as it does not own the common areas within the development.

The trust is seeking a declaration that the HOA’s failure to pay rent terminates the lease and member access to amenities such as riding trails, jogging paths, and tennis courts.

The HOA hasn’t responded to the cross-complaint yet. In an update to members on Nov. 4, the association’s litigation committee said they’ll defend against the claims and warned against jumping to conclusions based on the allegations.

A case management conference is scheduled for Jan. 15, 2025.

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